Google (GOOG) Bullish Stance Reiterated at RBC Capital Following New CFO Appointment
RBC Capital analyst Mark Mahaney came out with a few insights on Google (NASDAQ:GOOG) after the company appointed Morgan Stanley CFO Ruth Porat to be its CFO, post Patrick Pichette’s retirement announcement earlier this month. The analyst reiterated an Outperform rating on the stock, with a $650 price target, which implies an upside of 12.5% from current levels.
Mahaney noted, "We view this as a positive development. This is one of the most capable hires Google could make for this position. We view Google as the largest portfolio of Internet investments, which requires a CFO who can handle substantial complexity. But it also requires a CFO who understands the investment needs and opportunities of a rapidly evolving technology sector leader. Porat fits the bill. Separately, we also believe the hire increases the odds of two developments GOOG investors are keenly focused on: 1) potential cash back to shareholders; and 2) firmer opex management/discipline."
Bottom line: "We view this as a positive move – both given Porat’s impressive skill set and tech industry background and given the potential signalling with this hire of firmer cost controls and an increased possibility of cash returns."
According to TipRanks.com, which measures analysts' and bloggers' success rate based on how their calls perform, analyst Mark Mahaney has a total average return of 22.6% and a 67.4% success rate. Mahaney has a 34.3% average return when recommending GOOGL, and is ranked #19 out of 3546 analysts.